This is a very common myth that despite consistent and repeated debunking, continues to perpetuate.
iLife, iWork, AppleWorks, etc have never been part of the OS nor will they ever be. Front Row was only available on some machines in the past because only a few machines actually supported it. Now, all new Macs seem to have the ability to support it, so it will likely become part of the OS, though nothing is written in stone. If you have an older machine (say a PPC Mac or a Mini), it probably won't even install.
Regardless, these apps have only been included with the purchase of a compatible system as part of that machine's software bundle.
A machine's software bundle does not equate to a retail OS.
Period.